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How does space affect the allocation of the EU rural development policy's expenditure? An econometric assessment

Author

Listed:
  • Beatrice CAMAIONI

    (INEA (National Institute for Agricultural Economics), Rome - Italy)

  • Roberto ESPOSTI

    (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

  • Francesco PAGLIACCI

    (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

  • Franco SOTTE

    (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

Abstract

This paper focuses on the main drivers of the distribution of the Rural Development Policy's expenditure throughout the EU. Ex-post funds distribution across EU NUTS3 regions is considered. Three effects are admitted as major drivers: the "country effect"; the "rural effect" (i.e., the more rural a region the larger the amount of support it is expected to receive); the "pure spatial effect" (i.e. the influence of bordering regions and, in particular, of their degree of rurality). These effects are estimated adopting alternative spatial model specifications: spatial Durbin model, SEM and SAR model. Results differ across alternative specifications and definitions of rurality, but the prevalent evidence suggests that rurality matters in a counterintuitive direction, while also neighbouring regions play a role.

Suggested Citation

  • Beatrice CAMAIONI & Roberto ESPOSTI & Francesco PAGLIACCI & Franco SOTTE, 2014. "How does space affect the allocation of the EU rural development policy's expenditure? An econometric assessment," Working Papers 399, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  • Handle: RePEc:anc:wpaper:399
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    References listed on IDEAS

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    2. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
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    4. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    5. Camaioni, Beatrice & Esposti, Roberto & Lobianco, Antonello & Pagliacci, Francesco & Sotte, Franco, 2013. "How rural is the EU RDP? An analysis through spatial fund allocation," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(3), pages 1-24, December.
    6. James P. Lesage, 2008. "An Introduction to Spatial Econometrics," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 19-44.
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    8. Esposti, R. & Pagliacci, F. & Sotte, F. & Camaioni, Beatrice & Lobianco, A., 2013. "How rural the EU RDP is? An analysis through spatial funds allocation," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149900, Italian Association of Agricultural and Applied Economics (AIEAA).
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